It is necessary to fulfill recommendations of the International Monetary Fund (IMF) taking into account the social policy of the Belarusian government, BelTA learned from Professor Mikhail Kovalev, Dean of the Economics Faculty of the Belarusian State University.
The expert said: “Most of the IMF recommendations are wise, however, they need to be fulfilled taking into account the social policy of the state. For instance, we cannot raise utility rates up to 100% of their cost in one go. At the same time it seems to me that the IMF can meet us half way in the matter. Even in Europe there are countries, which citizens pay less for electricity than industrial enterprises. In some other countries the situation is reversed. The economics theory has not yet proven which way is better.”
Mikhail Kovalev also noted that the IMF's final decision on whether Belarus will get a loan will primarily depend on Belarus' resolve to bolster the performance of state-run enterprises. “It is no secret that all the problems the Belarusian economy faces today arise from low performance of the public sector. It is understandable that something should be done about it, that new models to run state-owned enterprises should be introduced. I wouldn't describe such measures as reforms but an improvement of the corporate management style,” explained Mikhail Kovalev. The expert pointed out that Belarus could tap into the experience of Chinese partners, who have already learned how to effectively manage their public sector.
An IMF mission led by Peter Dohlman worked in Belarus on 19 September – 1 October.
Minsk is negotiating the possibility of borrowing $3 billion from the IMF with the interest rate of 2.28% per annum for a period of ten years.